3rd August 2012
Provided by Rift Capital Allowances
Experts have claimed that over £1000 is lost every year, due to workers failing to collect their due tax relief on their pensions. A lack of awareness is believed to be at fault and it is estimated that overall £300 million is lost each year by the working population. A vastly greater degree of educating and informing needs to be done by the State and employers, in regards to what is fully owed to workers through tax relief.
The study conducted by Prudential points towards the majority of the working population being unaware of what is rightfully theirs through tax relief. A whopping 60 percent of workers fail to claim their full 40 percent of tax relief due. In addition, 19 percent are unsure if they've actually collected that full amount. This then means that a total of 79 percent of workers are uncertain of what they're entitled to through tax relief.
The average employee works for a 40 year span throughout their life. Therefore, considering experts claim £1000 a year is lost by a significant proportion of workers, some are losing out on £40,000 throughout their lifetime – a large figure that could have otherwise gone to great use post-retirement.
Unfortunately, while we are bombarded with information on what we owe the State, little is mentioned to us in regards to what the State owes us. Therefore, what is needed is a government program based on informing people on what they ought to recoup through tax reliefs. Unfortunately, this may never happen as a general lack of awareness on this matter is obviously convenient for the government.
There are a number of businesses however, such as Rift Capital Allowances that work to help people discover and recoup what is rightfully owed to them through tax reliefs.
Matthew Stephens, a tax specialist at Prudential, said: 'It's astonishing that so many people fail to claim this valuable tax relief, which could help enormously in meeting the cost of retirement.
'Surely no one would knowingly turn their nose up at a potential £1,020 extra tax saving?'
Prudential estimated that over 290,000 workers could be missing out on such amounts and educating employees is therefore fundamental to ensuring the majority of working citizens get what is rightfully theirs.